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Council amends airport refinancing, keeps 2.58% interest after debate
Summary
After a motion to reconsider, the Lewiston City Council approved an amended order refinancing a loan to the Auburn Lewiston Municipal Airport by extending the term but retaining a 2.58% interest rate; the final vote was 4–3.
The Lewiston City Council, after a lengthy public and council debate, voted to approve refinancing a municipal loan to the Auburn Lewiston Municipal Airport with an extended repayment term but — after amendment — keeping the original 2.58% interest rate.
Background and motion: Councilors first voted 5–2 to reconsider an earlier action on the airport loan. The forum then debated an amended order to extend the loan term to reduce annual payments while preserving interest. Councilor Chittum moved an amendment to retain the initial 2.58% interest rate; that amendment passed 4–3. The final motion — to authorize refinancing with the 20-year extension while keeping 2.58% interest — then passed by a 4–3 margin.
Arguments for and against: Supporters of retaining interest cast the issue as fiscal stewardship. “I would be failing my constituents and the taxpayers of Lewiston if I didn't argue that the original interest rate of the loan of 2.58% should be continued,” Councilor Chittum said, arguing the city would otherwise forego interest revenue.
Airport supporters and board members urged flexibility to help the airport stabilize operations. Airport board member Mark Blay told the council that underwriting at 0% had a clear effect on debt service and potential tenants: at 0% the payment would fall to roughly $4,500 a month in the speaker’s estimate; at 2.58% the required payment was closer to $6,000 monthly and would be “very tight” for prospective tenants. Blay said the airport’s recent management and board changes had helped stabilize operations but the hangar remains difficult to lease.
Practical effect: The amended action extends the loan term to lower annual principal payments while preserving some interest income to the city. Staff and councilors noted the airport is an intermunicipal entity shared by Lewiston and Auburn; Auburn voted earlier to extend its portion of the financing at 0% interest, the council noted, and Lewiston’s decision is independent.
Administrative next steps: The order includes instructions for staff to reflect the retained interest rate in the airport’s budget review and to notify airport management. The vote was split; councilors said the decision balanced municipal fiscal concerns with the airport’s operational challenges.
